The electric truck market is taking the world by storm 

  • Electric truck market poised for significant growth with a projected 34.2% CAGR by 2030, reaching 1,067,985 units.
  • NMC battery dominance, driven by efficiency, while LFP batteries gain traction for longer lifespan.
  • European region leads the surge, fueled by strict emission regulations and major manufacturers’ contributions.

The electric truck market is set to exceed one million units by 2030

The electric truck market is experiencing a remarkable surge. The market is poised to achieve a robust 34.2% compound annual growth rate (CAGR) by 2030, ultimately reaching an impressive 1,067,985 units. These projections are from a report titled “Electric Truck Market by Propulsion, Type, Range, Battery Type, Battery Capacity, Level of Automation, End User, GVWR & Region – Global Forecast to 2030.”

One pivotal catalyst behind this surge is the intensified emphasis by governments on emission-free vehicles, particularly in the burgeoning e-commerce and logistics sectors. This strategic alignment not only resonates with global environmental objectives but also unlocks significant opportunities for Original Equipment Manufacturers (OEMs) to diversify their revenue streams and extend their geographical footprint within the electric commercial vehicle industry.

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The preeminence of the NMC (Nickel Manganese Cobalt) battery segment plays a pivotal role in propelling market growth. Renowned for its efficiency, leading Chinese OEMs favor NMC batteries for their electric truck fleets. These batteries boast higher energy density compared to their LFP (Lithium Iron Phosphate) counterparts. As the cost of NMC batteries continues to decline, their market share steadily expands.

However, there is a growing demand for LFP batteries, attributed to their longer lifespan, particularly in European and American markets.

As Josh Spencer, EV Sales Manager, Ford & Slater, noted:

“If you look at Daimler Mercedes’ latest eActros announcement, the whole DAF Electric range, along with BYD and CATL, these are all utilising almost exclusively LFP chemistries. The Tesla Semi-Truck is of course ~1MWh LFP too, making it hard to ignore in the marketplace.”

DAF recently unveiled their next-generation all-electric trucks, boasting standard-setting ranges on LPF batteries.

The electric truck market is witnessing a surge in popularity, especially in the e-commerce sector, where electric trucks are making significant inroads for last-mile delivery. Major industry players like Tesla and Volvo have made noteworthy announcements. Tesla announced 1.5 million pre-orders for its electric cyber truck. Meanwhile, Volvo vowed to supply 20 VOLVO FH electric trucks to Amazon in Germany.

Light-duty trucks are leading the electrification wave, with prominent players like Ford, GM, Rivian, and Tesla actively participating in the segment. The escalating demand for these trucks is propelled by the need for low-emission intra-state commercial transport, exemplified by Tata Motors Limited’s recent launch of the Ace EV, a light-duty electric truck with an impressive 154 km range.

Europe stands out as the fastest-growing region in the electric truck market, driven by stringent emission regulations and substantial government incentives. Major manufacturers such as AB Volvo, Mercedes Benz Group AG, and Scania AB are actively contributing to the region’s electric vehicle surge. In response to the escalating demand for zero-emission transportation, AB Volvo has recently announced the establishment of a large-scale production plant for battery cells.

As the electric truck market continues to evolve, it becomes increasingly evident that the convergence of environmental consciousness, technological innovation, and strategic government initiatives is steering the industry toward a sustainable and electric future.

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